Technical Analysis

Stocks recovered on 5 November, with the S&P 500 rising by about 40 basis points.

It was a risk-off day for stocks, with the S&P 500 falling by around 1.2%. The damage was greater on the Nasdaq 100, where the index dropped by more than 2%.

The ADP jobs report on Wednesday, 5 November, at 8:15 a.m. Eastern Time is expected to show that hiring in October improved, rising by 25,000 jobs — a significant improvement from the September reading, which showed a decline of 32,000 jobs.

A break beneath the key level would hurt what are already weakened short-term technicals, and test what is clearly extreme buy bias among retail traders.

NVIDIA has become the first publicly traded company to exceed a $5 trillion market capitalization.

The S&P 500 finished the day unchanged, even though the Fed cut rates by 25 basis points.

The next couple of days will be a defining moment for US equity markets and markets globally, with the Fed, the BOJ, and the ECB all making monetary policy announcements and decisions.

The S&P 500 rallied about 1% on the day. This came as implied volatility, as measured by the VIX 1-Day, fell sharply from an elevated level on Friday, 24 October.

Big Tech Earnings Set to Steer US Markets into Year-End.

The technicals remain bullish on both daily and weekly time frames, while in sentiment it’s a story of majority buy bias.